Best Stock Investment Strategy For 2010 & Beyond

The best stock investment strategy for 2010 andS&P 500.
beyond will focus on a stock investment that isIn one simple transaction you can buy shares in
actually an investment fund. This investmentSPY which tracks the major market index that
strategy is easy to put into action and is the bestthe professionals follow and use as a benchmark,
way to simplify things for the average stockthe S&P 500 Index. If the market is up you
investor. You can do it the hard way in 2010 andmake money... if stocks are down you lose like
beyond, or you can learn about stock investmentmost everyone else. Then, you add investment
funds and do it the easy way.funds (ETFs) to your portfolio that track
Many people try to pick the best stockindustries or sectors that were beaten up the
investment by pouring over the list of equitiesworst when stocks in general were falling. Avoid
(stocks) traded on the major exchanges. Thatthose that have already reached new highs.
gives you about 5000 choices. Others try to pickFor example, the gold sector was cold for years
the best investment fund from the equitybefore it took off and gold prices hit all-time highs.
category offered by a specific mutual fund family.It's too late to get rich here in 2010 and going
This limits your choices, but also yourforward for a few years. On the other hand, the
opportunities; since few families offer a widereal estate industry has been hammered in recent
array of specialty or sector funds that specializetimes. Stocks and funds that invest in that sector
in a particular industry.lost up to 90% when the financial crisis unfolded,
The best stock investment strategy for 2010 andand are still way under water. Your best stock
going forward is to focus on industries andinvestment in 2010 or in the years that follow
sectors that have been out of favor and willcould very well be an ETF that tracks the real
eventually be top performers when a realestate sector. Symbol URE is one such fund, and
economic recovery takes hold. The economy isgives investor 2 to 1 leverage in the process.
not out of the woods yet, as the jury is still outIf you are new to the world of investing, your
in regard to our financial system and the bigbest stock investment strategy is to focus on
banks that created the financial crisis.the investment funds (ETFs) that trade on
Unemployment is still at unacceptable levels andexchanges and offer just about any category of
the real estate market is still in a funk. Where willinvestment conceivable. For example, how else
the big profits be when the financial stormcould you invest in equities, bonds, commodities,
eventually passes?or foreign securities without years and years of
You'll find your best stock opportunities in theexperience? Go to your broker's site or other
sectors that were previously beat up severely.financial site and get familiar with the various
Now, let's talk investment strategy. You will wantcategories of ETFs that are available. Or search
to have a primary equity holding in the form of"ETF" on the internet.
an equity investment fund that moves with theI've been an active investor for 35 years. Today,
market. That's a lot easier than picking individual90% of my investing activity is in exchange
issues and putting together your own portfolio.traded funds. I like to be able to play gold, real
You can buy into the general market by simplyestate, and other sectors the quick and easy
buying shares in an ETF (exchange traded fund)way without the risk associated with the likes of
that tracks a major market index like thecommodities contracts and options contracts.